Saudi economic authorities and businessmen unanimously agreed that the 2018 budget confirms the government's commitment to maintaining high-level spending, anticipating the private sector to boost capacities and accelerate the pace of diversifying sources of income.
On top of that, it is also expected that exports will witness a vital spike. The allocation of 205 billion riyals ($ 54.6 billion) as capital expenditure in 2018 compared to 180 billion riyals ($ 48 billion) allocated in 2017 reveals the government's renewed determination to support growth in the private sector.
Jadwa Investment said in a report yesterday that the government will continue to support the economy with spending.
"Although disbursement in the 2018 budget covers all sectors, expenditure priorities have been consistent with those in the last few years. The allocations for the military and security services sector, the education sector, the health and social services sector and the economic resources sector accounted for 77 percent of total allocations,” Jadwa Investment said.
Jadwa Investment affirmed that the expenditure budget would significantly boost the level of capital expenditure in the Kingdom. In total, capital expenditure from the government, public investment fund, and industrial development fund will reach SR338 billion in 2018.
More so, the report pointed out that another source of revenue improvement is the increase in local energy prices, with the approval of an amendment to power tariffs.
It is expected that the government revenues will increase by SR14 billion riyals ($ 3.7 billion) in 2018.
According to Jadwa, the 2018 budget was the highest ever estimated at SR 978 billion, up by an annual SR 88 billion. This year's budget continued to support the overall objectives of the kingdom’s transformational vision 2030.